Fate Therapeutics (NASDAQ:FATE) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Fate Therapeutics beat quarterly expectations: The biopharmaceutical company reported an adjusted loss of $0.25 per share, $0.02 better than analyst estimates, while revenue of $2.08 million exceeded the $1.37 million consensus.
• The company remains deeply unprofitable: Fate posted a negative net margin of 2,056.79% and negative return on equity of 58.89%. Shares traded near $2.69, with the stock’s 12-month range spanning $0.93 to $3.23.
• Analyst sentiment is mixed: The stock has an average “Hold” rating and a consensus price target of $6.00, while institutional investors and hedge funds collectively own 97.54% of outstanding shares.

Fate Therapeutics (NASDAQ:FATE - Get Free Report) posted its quarterly earnings data on Thursday. The biopharmaceutical company reported ($0.25) EPS for the quarter, topping analysts' consensus estimates of ($0.27) by $0.02, FiscalAI reports. Fate Therapeutics had a negative net margin of 2,056.79% and a negative return on equity of 58.89%. The firm had revenue of $2.08 million during the quarter, compared to analyst estimates of $1.37 million.

Fate Therapeutics Stock Performance

Shares of FATE stock traded down $0.04 during trading on Thursday, hitting $2.69. 1,086,805 shares of the company were exchanged, compared to its average volume of 2,658,771. The business's 50-day simple moving average is $2.49 and its 200 day simple moving average is $1.85. Fate Therapeutics has a twelve month low of $0.93 and a twelve month high of $3.23. The firm has a market capitalization of $312.96 million, a price-to-earnings ratio of -2.45 and a beta of 2.52.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on FATE. Jefferies Financial Group set a $4.00 target price on shares of Fate Therapeutics in a research note on Tuesday, May 19th. HC Wainwright reiterated a "buy" rating and set a $7.00 price target on shares of Fate Therapeutics in a report on Monday, June 8th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Fate Therapeutics in a research report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $6.00.

Insiders Place Their Bets

In other Fate Therapeutics news, insider Cindy Tahl sold 25,590 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $1.88, for a total value of $48,109.20. Following the completion of the sale, the insider owned 628,155 shares in the company, valued at $1,180,931.40. This represents a 3.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 4.74% of the company's stock.

Hedge Funds Weigh In On Fate Therapeutics

A number of hedge funds have recently modified their holdings of the stock. Comerica Bank boosted its position in Fate Therapeutics by 55,698.6% during the first quarter. Comerica Bank now owns 82,024 shares of the biopharmaceutical company's stock valued at $65,000 after purchasing an additional 81,877 shares during the last quarter. AQR Capital Management LLC increased its position in Fate Therapeutics by 296.4% in the 1st quarter. AQR Capital Management LLC now owns 585,025 shares of the biopharmaceutical company's stock worth $462,000 after purchasing an additional 437,423 shares during the last quarter. Jane Street Group LLC raised its stake in shares of Fate Therapeutics by 106.9% during the 1st quarter. Jane Street Group LLC now owns 63,691 shares of the biopharmaceutical company's stock worth $50,000 after purchasing an additional 32,911 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Fate Therapeutics by 7.0% during the 2nd quarter. Geode Capital Management LLC now owns 2,429,167 shares of the biopharmaceutical company's stock worth $2,721,000 after purchasing an additional 159,558 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Fate Therapeutics by 19.6% during the 2nd quarter. Invesco Ltd. now owns 255,372 shares of the biopharmaceutical company's stock valued at $286,000 after buying an additional 41,869 shares during the last quarter. 97.54% of the stock is owned by institutional investors and hedge funds.

Fate Therapeutics Company Profile

Fate Therapeutics, Inc is a clinical‐stage biopharmaceutical company focused on the development of first‐in‐class cellular immunotherapies for cancer and immune disorders. The company leverages its proprietary induced pluripotent stem cell (iPSC) platform to create off‐the‐shelf natural killer (NK) and T‐cell products designed to overcome limitations of donor‐derived approaches. Fate's research aims to deliver therapies with consistent quality, increased potency and scalable manufacturing for broad patient access.

Central to Fate's pipeline are multiple iPSC‐derived cell therapy candidates in active clinical development.

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